In this issue:
- Bank Launches Tokenized Deposits; Tokenization Platform Plans To Go Public
- Tokenized Securities Venue Receives Objections from Approximately 50 Public Companies
- FATF Launches Targeted Review Related to Virtual Assets
- SEC Action Targets Fraudulent Crypto Hedge Fund, Exchange Platform
- FBI Issues Cyber Alert on $6B Cryptocurrency Theft by North Korea
- Crypto Hacks Continue Across Market Sectors
Bank Launches Tokenized Deposits; Tokenization Platform Plans To Go Public
A major global bank recently announced that it has launched a “Tokenised Deposits solution in Hong Kong.” According to a press release, “[l]everaging the benefits of tokenisation and the Hong Kong Monetary Authority (HKMA)’s EnsembleTX infrastructure, the solution enables corporate treasurers, banks, investment platforms and digital asset businesses to enhance efficiency of their treasury, liquidity and operational activities.”
In another recent development, a major U.S. tokenization infrastructure provider announced “a definitive business combination agreement” with FG Imperii Acquisition Corp. “… a publicly traded special purpose acquisition company.” According to a press release, the transaction advances the company’s objective “to establish an independent public company footprint to scale its regulated, multi-asset infrastructure-as-a-service solutions across tokenized securities and derivatives, alongside its industry-leading blockchain patent portfolio.”
For more information, please refer to the following links:
- [] launches Tokenised Deposits in Hong Kong
- [], a Leader in Tokenization Infrastructure, to Go Public Via Business Combination with FG Imperii Acquisition Corp.
Tokenized Securities Venue Receives Objections from Approximately 50 Public Companies
According to recent reports, approximately 50 U.S. public companies have directed a U.S.-based “tokenized securities venue” (TSV) not to list tokenized versions of their National Market System (NMS) stock. The TSV operates according to the Innovation Exemption recently published by the U.S. Securities and Exchange Commission (SEC). The Innovation Exemption provides that before a TSV makes available for trading tokenized NMS stock that is tokenized by an unaffiliated third party, the TSV must provide written notice and an opportunity to object to the issuer of the underlying NMS stock. According to reports, approximately 20 public companies – most of which are technology or crypto companies – have been notified of the TSV’s plans to list tokenized versions of their stock and have not yet objected.
For more information, please refer to the following links:
FATF Launches Targeted Review Related to Virtual Assets
On Oct. 30, the Financial Action Task Force (FATF) launched a “targeted review process to accelerate global implementation of FATF Standards relating to virtual assets.” According to a FATF press release, “[e]ffective implementation of the FATF Standards in relation to virtual assets (VAs) and virtual asset service providers (VASPs) remains uneven across the global network[,] and criminal networks continue to abuse virtual assets, exploiting both their cross-border nature and implementation gaps.” Accordingly, “[t]he FATF calls on jurisdictions to urgently address remaining implementation gaps and deficiencies.” Initial results from the FATF targeted review will be published in June 2027, with further results to be published in October 2027.
For more information, please refer to the following link:
SEC Action Targets Fraudulent Crypto Hedge Fund, Exchange Platform
By Keith Murphy
According to recent press releases, the SEC charged a purported hedge fund, BG Wealth Sharing Ltd., and a related cryptocurrency exchange trading platform, DSJ Exchange Pty. Ltd., with orchestrating an alleged investment fraud that collected more than $130 million from tens of thousands of retail investors across the U.S. As noted in the releases, the companies allegedly promised extraordinary, risk-free returns from crypto trading, falsely claiming that the purported hedge fund was a registered investment adviser and that the cryptocurrency exchange was a licensed and secure trading platform. The defendants reportedly endeavored to bolster their legitimacy by using false SEC filings, fake certificates bearing the SEC seal, extensive promotion through social media and other channels, and Ponzi-like payments to some investors while misappropriating remaining funds.
For more information, please refer to the following links:
- Two Entities Charged in $130 Million Fraud Scheme That Used False SEC Filings to Boost Investor Confidence
- [] Sharing Ltd and DSJ Exchange Pty Ltd
FBI Issues Cyber Alert on $6B Cryptocurrency Theft by North Korea
By Amos Kim
According to a recent cyber alert, the FBI announced that the Democratic People’s Republic of Korea (North Korea) was responsible for the theft of more than $6 billion in virtual assets from a major cryptocurrency exchange on or about Oct. 29. As noted in the alert, the FBI refers to this specific North Korean malicious cyber activity as “TraderTraitor.”
According to the alert, the FBI, together with the U.S. Secret Service (USSS) and IRS Criminal Investigation (IRS-CI), observed TraderTraitor actors converting the stolen assets primarily into Ether and expects the assets to be further laundered through decentralized finance (DeFi) and instant swap services. The agencies urged private sector entities, including THORNode operators, RPC node operators, instant exchanges, DeFi services, blockchain analytics firms and other virtual asset service providers, to block transactions with or derived from addresses used by TraderTraitor actors to launder the stolen assets. For public awareness, the alert provides an extensive list of cryptocurrency addresses holding or having held assets from the theft that are operated by or closely connected to North Korean TraderTraitor actors.
For more information, please refer to the following link:
Crypto Hacks Continue Across Market Sectors
By Keith Murphy
A well-known prediction market platform temporarily halted trading on its international platform after reports of unauthorized withdrawals linked to the compromise of a third-party provider, according to a recent report. The company reportedly fixed the vulnerability, referred the incident to law enforcement and indicated it would reimburse affected users. According to the report, security researchers linked the attack to malicious JavaScript served through website-monitoring firm DebugBear, which allegedly exploited users’ existing authenticated sessions to sell positions or transfer tokens to attacker-controlled addresses without directly stealing passwords, seed phrases or private keys.
According to a recent company security update, crypto hardware wallet company Trezor is investigating a credible report that a Trezor Safe 5 purchased from CryptoBilis, formerly an authorized Southeast Asian reseller, may contain a malicious hardware implant, although the device has not yet been examined and no Trezor customers have reported lost funds. The investigation reportedly follows Ledger’s discovery that some hardware wallets sold by CryptoBilis had been physically tampered with as part of a sophisticated supply chain attack that resulted in customer losses. Trezor is advising customers who purchased devices from the reseller to take precautionary steps to secure their funds.
In related news, an alleged leak from a cryptocurrency swap service reportedly contains tens of thousands of order records, including 4,580 completed cross-chain swaps linking transaction data, Monero receiving addresses and client IP addresses, according to a recent report. The dataset reportedly could undermine users’ privacy by connecting cryptocurrency transactions with network metadata, including records potentially linking Monero deposits to Ethereum payout addresses. As noted in the report, the files’ breach provenance has not yet been independently verified.
For more information, please refer to the following links:
- $2 Million+ Drained From [] Traders in New Supply Chain Attack
- Implant reported in a Trezor sold by CryptoBilis
- Alleged Wagyu Leak Contains 4,580 Completed Crypto Swaps Linking Monero Wallets to IP Addresses
